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An accounting information system (AIS) is a structure that a business uses to collect, store, manage, process, retrieve and report its financial data so that it can be used by accountants, consultants, business analysts, managers, chief financial officers (CFOs), auditors and regulatory and tax agencies.
Though there are many reasons why companies use accounting, the main reason is to be able to produce financial statements. In order to produce the financial statements, all the income and expenses of the company must be collected, classified, and entered into special accounting books called journals. Accounting is a step-by-step process that follows a specific pattern. The pattern resembles a circle and is called the accounting cycle.